Market Conditions in 01902>Question Details

Tracey, Other/Just Looking in Lynn, MA

Diamond District condo in Lynn - Lynn Shore Drive with ocean view. How do realtors look at value relative to?

Asked by Tracey, Lynn, MA Mon Jan 14, 2008

Swampscott? Marblehead? Comps for same zipcode in Lynn don't seem like they'd compare with Diamond District with ocean view? How can you assess market value?

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Hi tracey, I sell alot in diamond district! Depends on each building and condo they all have different values. Let me know if you have other questions . thanks Joe
0 votes Thank Flag Link Mon Jun 20, 2011
Unfortunately in this market it is hard to find comps for any property and put a confident price tag on a home. Sales prices from three months ago need to be adjusted down to be used on an analysis today. Final sales prices today depend more on seller motivation than anything else. The important thing is using the current data to come up with a price and then listening to the market and adjusting accordingly. The adjustments must be made quicker than in the past to stay ahead of the market.
0 votes Thank Flag Link Wed Jan 23, 2008
Tracey-
In this type of depressed market, a water view will make a slight difference in the market value, depending on the type of water view. Do you have to lean out of the bathroom window to see the water? Is it a water view in the winter only, when the leaves are off of the trees? Is it a view you can enjoy while having coffee in the kitchen, AND the diningroom, AND the livingroom, etc?
In a GOOD market, a complete ocean view without much chance of being lost by future construction, etc., will add a 20% to 30% increase in market value.
In a BAD market, it may only make the property MUCH more competitive.
It's hard for an appraiser to use comps from Swampscott and Marblehead for a Lynn property. In a GOOD market with little inventory available, they might be able to persuade a lender to use a comp close by in Swampscott or Nahant. It's not going to happen in this market. Even if nothing has closed in the past six months with a good view, the appraiser will use Diamond District comps and add onto the value to compensate for the view.
When I bought my house on the water on Sluice Pond, none of the comps were ON the water. The appraisers know how to adjust for the view.
Good Luck
Paul
Web Reference: http://www.lynnforsale.com
0 votes Thank Flag Link Mon Jan 14, 2008
Jon nailed it.

Lynn is not swampscott or marblehead. When you are buying a property. The town is a big factor. What is lynn's infrastructure compared to Swampscott and marblehead. How are the schools in comparison.
0 votes Thank Flag Link Mon Jan 14, 2008
Well I can't speak for all of us.... but I wouldn't look at value relative to other towns. I'd be more likely to look for older comps or broaden my search and make adjustments within the same area before I started looking at different towns.
So if it's a 1 bedroom condo, I'd rather start looking at recently sold 2 beds before I started looking at similar properties in different towns. Or broaden my search for comps to 9 months instead of 6... It's not ideal to do... but it's better than looking at other towns...

Remember there's three important factors about a property.... LOCATION LOCATION LOCATION!!!!
0 votes Thank Flag Link Mon Jan 14, 2008
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